HUL to Challenge Rs 1,986 Crore Tax Demand
Hindustan Unilever (HUL) has received a massive income tax demand of Rs 1,986.25 crore for the financial year 2020-21, which the FMCG major has stated it will appeal.
Key Takeaways
- HUL faces a Rs 1,986 crore tax demand for FY 2020-21.
- The order was issued on October 30, 2025.
- The company will file an appeal against the order.
- HUL states there is no material financial or operational impact.
Details of the Tax Order
The assessment order was received by HUL on October 30, 2025, from the Assistant Commissioner of Income-Tax, Central Circle 5(2), Mumbai. It was issued under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961.
The demand includes transfer pricing adjustments, where tax authorities challenged valuations or disallowed payments made to related parties. It also involves disallowances concerning depreciation claimed by the company.
Company’s Response and Financial Impact
Hindustan Unilever has confirmed it will file a necessary appeal with the appellate authority within the permissible timeline. Despite the substantial demand, the company asserted in its regulatory filing that there is “no material impact on financial, no impact on operation or other activities of the company due to the order”.
This disclosure was made to the stock exchanges (BSE and NSE) on Friday, providing transparency to investors and stakeholders.
